Unlike previous years, the run up to this year’s Budget was surprisingly quiet. Usually, in the weeks and days running up to fiscal event, the media and financial experts spring into action, speculating on what may, or may not, be announced by the Chancellor.
This year, on the other hand, the media was noticeably quiet as many in the media believed the Chancellor, John Healey, was looking to avoid any controversial announcements. On the day, this turned out to be largely correct, with Mr Healey saying he wanted to provide a Budget that provided stability and direction for the nation.
With this in mind, read on to discover the key announcements made by Mr Healey, and whether his first Budget really was as uneventful as many thought it would be.
There are economic challenges, but Britain has beaten the forecasts
Mr Healey pointed to the war in the Middle East, which he said was contributing to a drag on trade and the current ‘global economic storm’. He also confirmed the government's financial headroom will fall from £24 billion to £15 billion, according to the OBR.
The Chancellor also said the OBR predicted that £14 billion more would be spent on debt interest in 2026. He added that the UK’s Gross Domestic Product (GDP) grew by 1.2% this year, next year it’s expected to fall to 1%, which is significant drop from the expected 1.6%.
While he said this meant "there are real challenges ahead", he went on to say Britain had beaten the forecasts. This, the Chancellor went on to say, was demonstrated by the Bank of England upgrading their forecasts for UK growth this year – something the IMF did earlier this month – and the economic outlook for the UK looked healthier for 2028 onwards.
So with this in mind, we’ll now consider the Chancellor’s key announcements that could impact households’ finances.
The State Pension ‘triple lock’ will be changing
The Chancellor confirmed adjustments to the ‘triple lock’ following the Prime Minister’s proposal that it should be overhauled. Currently, retirees that qualify for a full State Pension see the benefit increase in line with the triple lock, which means the pension increases by the higher of:
· the rate of inflation, based on the previous September’s Consumer Price Index (CPI)
· the average wage increase from May to July of the previous year
· 2.5%.
Yet the Government has said that it intends to change the triple lock as from April 2030, something the Chancellor confirmed during his announcements. From 2030 the State Pension will still rise by at least 2.5% or inflation, whichever is higher. However, instead of automatically matching earnings whenever earnings growth is higher, increases above that level will only be made where necessary, in order to maintain the State Pension's value relative to average earnings.
Mr Healey also confirmed that during this Parliament, retirees who only receive the basic State Pension won’t pay Income Tax if the triple lock means the benefit exceeds the frozen Personal Allowance.
The Cash ISA Allowance will stay at £20,000
The Chancellor announced that the Cash ISA Allowance would remain at £20,000 for all ages after April 2027. This reversed his predecessor, Rachel Reeves, who announced in 2025 that the allowance would drop to £12,000 for Cash accounts, for those aged under the age of 65.
In addition to the reversal, Mr Healey said he would work to create a new ‘starter ISA’ to help make investment more accessible for first time investors. This could be good news for households looking to build wealth in a more tax-efficient way.
In addition to this, Mr Healey introduced a new First Time Buyer (FTB) ISA from April 2029, which will replace the Lifetime ISA (LISA). While the details have yet to be released, the new ISA aims is to ensure account holders are not disadvantaged when they use their savings to buy a property that’s valued at above £450,000.
While LISA account holders can continue to contribute to their accounts, the Chancellor promised to remove the penalties imposed on savers when they buy a property worth more than £450,000.
Your First Home Scheme announced
A new £4.7 billion equity loan scheme, which the Chancellor said would support 70,000 first-time buyers with Government equity loans of up to 20% of value was announced. Participants will also benefit from lower deposit requirements and a five-year interest free period, which Mr Healey claimed would save the typical buyer hundreds of pounds a month.
Banks will face higher surcharges on profits
As expected, Mr Healey increased the surcharge paid by banks on Corporation Tax. In 2023, former Chancellor Jeremy Hunt reduced the surcharge banks pay on Corporation Tax, cutting it from 8% to 3%.
Mr Healey reversed the cut by temporarily increasing it 3% – much less than the 5% or 8% increase some feared it would be. The surcharge will run for 15 months, starting from January 2027.
When you consider a Guardian article points out that HSBC, NatWest, Barclays and Lloyds Banking Group generated £200 billion in pre-tax profits over the past five years, increasing the surcharge could help to boost the UK’s coffers.
That said, it could also have indirect consequences for households, who may see bank charges and borrowing costs increase.
Landlords will pay an additional 2% on rental income
While the Chancellor didn’t announce it during his Budget, the Government has said that landlords will face a tax hike as from April 2027. This is because any income received from rental properties will be charged at an additional 2%.
As a consequence, basic rate taxpayers will pay 22% on rental income, higher-rate taxpayers will be charged at 42% and additional-rate taxpayers will pay 47%.
Savers will pay a 4% surcharge
The Chancellor announced that the savings rate of tax will increase to 24% for basic-rate taxpayers, 44% for higher-rate taxpayers and 49% for additional-rate taxpayers. The tax is paid on interest earned, and it’s the second time it has increased in as many years.
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Please note: this article is based on the announcements made in the UK Budget on 28 October 2026. Some measures remain subject to legislation, further clarification or implementation. The information is provided for general guidance and does not constitute personal financial or tax advice.
Tax treatment depends on individual circumstances and may be subject to change in the future. Please seek professional advice before making decisions.
28 October 2026